Ineos UK E&P Holdings has entered into its first, five-year, reserve-based lending facility (RBL Facility) of £220 million ($294M).
Ineos said on Wednesday that the facility has been secured on attractive terms on the back of the recently-acquired assets from DEA UK and Fairfield Energy.
To remind, Ineos bought interests in the Breagh and Clipper South gas fields in the Southern North Sea in October last year from a UK subsidiary of DEA Deutsche Erdoel AG. Ineos also acquired additional 25% interest in the Clipper South field from Fairfield, also in October 2015.
The company explained that the facility will enable repayment of part of its equity financing for the acquisitions of DEA UK and Fairfield Energy and will facilitate future development expenditures.
Geir Tuft, Ineos Breagh CEO, said: “Ineos is a new entrant to the North Sea and this first step into the oil and gas backed lending market demonstrates support for both our strategic vision and our ambitious plans for the future.”
“This first RBL facility is a landmark for INEOS and validates the quality of the assets we acquired in 2015. It is seen as a catalyst to develop future projects and continue to pursue opportunities in the North Sea.”
The facility has been arranged by HSBC and Lloyds with participation from Barclays, Deutsche Bank, Goldman Sachs and Bank of Montreal.